COUNTRY BACKGROUND - Gross National Happiness Commission

CHAPTER 20
ENERGY SECTORENERGY SECTOR
I. Basic SituationI. Basic Situation
20.1 The energy sector became one of the major sources of economic growth during the 6FYP, its contribution
having been negligible in previous years. This sector is envisaged to provide substantial revenues in the years to
come. However, as explained in Chapter 7, Economic Outlook, the benefits will only be realised in the 8FYP, as the
major new projects will be initiated in the 7FYP and commissioned at the end of this period.
A. Structure of the SectorA. Structure of the Sector
20.2 While there have been significant increases in electricity production, the major consumer of energy is the
household sector, reflecting the low level of development in the other sectors of the economy, particularly the
industrial sector. The percentage share of energy consumption by sectors 1984 and 1989 is shown in Table 20.1.
Table 20.1 Percentage Share of energy Consumption
Source: Energy Data Profile, Dept of Power, April 1991
Energy SourcesEnergy Sources
Sector % in 1984 % in 1989
Agriculture 0.7 1.2
Industry 3.9 13.1
Transport 4.3 5.2
Commercial establishments 0.0 0.0
Government organisations 3.4 3.3
Electricity generation 1.7 0.0
Total 100 99.9
20.3 Firewood consumption data has been compiled on the basis of a household energy survey carried out by the
Department of Power in 1990. There are many unavoidable problems in estimating firewood consumption and so
the data reported must be used with caution. Firewood accounts for 77% of total energy consumption: an estimated
1,170,000 cubic metres in 1989. This includes all users of firewood such as households, commercial establishments
for example agro-industries, institutes such as schools, monastic bodies, army, police etc. As a percentage of the
total consumption of firewood, the household sector used 95%, Government and commercial establishments 3%,
the agriculture sector 0.9% and industry used only 0.7%. Annual consumption of firewood for a typical household
was estimated at 14 cubic metres. Out of this quantity, 7 to 9 cubic metres was used in cooking and the rest was
used for space heating.
Electricity and Hydropower Generation Electricity and Hydropower Generation
20.4 The theoretical potential for power generation has been estimated at 20,000 MW although the exploitable
capacity in Bhutan has been estimated at 6,000 MW. There are at present 21 run of the river hydro-electricity
generation stations, which have a capacity to generate a total of 355 MW: less than 6% of the estimated exploitable
capacity. Existing hydro-power generating capacity includes the Chukka Hydro Scheme with an installed capacity
of 336 MW, 7 small size hydro-plants ranging from 300 to 1,500 kw and 12 micro hydels with capacity ranging
from 10 to 80 kw. There are also three plants of 200 kw capacity each under construction which will be completed
in the 6FYP.
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